Facebook Page
Twitter
RSS
Thanks Thanks:  0
+ Reply to Thread
Results 1 to 2 of 2
  1. MHB Apprentice

    Status
    Offline
    Join Date
    Nov 2016
    Posts
    3
    Thanks
    0 times
    Thanked
    0 times
    #1
    Hi, I'm a bit confused regarding what steps to take to answer the following question:

    In 8 years, a new library is being opened. Expenses are estimated to be $52,000, payable at the end of each month. If all funds earn 14.4% compounded monthly, how much money needs to be invested today, to be able to support the library in perpetuity?


    I have no idea what the first step is. I know it's something to do with 8 years but not sure what to do with it. I tried doing N=12*1000=12000, I/Y=14.4, P/Y=12, C/Y=12, FV=0, PMT=52000, PV=X however the answer I get for PV is wrong because I feel like I'm missing the initial step.

    I could be completely wrong or misinterpreted the question so any help or clarification would be amazing. Thanks.

  2. MHB Master
    MHB Math Helper

    Status
    Offline
    Join Date
    Jan 2012
    Posts
    1,281
    Thanks
    130 times
    Thanked
    2,039 times
    Thank/Post
    1.592
    #2
    Quote Originally Posted by Aleckand9 View Post
    Hi, I'm a bit confused regarding what steps to take to answer the following question:

    In 8 years, a new library is being opened. Expenses are estimated to be $52,000, payable at the end of each month. If all funds earn 14.4% compounded monthly, how much money needs to be invested today, to be able to support the library in perpetuity?


    I have no idea what the first step is. I know it's something to do with 8 years but not sure what to do with it. I tried doing N=12*1000=12000, I/Y=14.4, P/Y=12, C/Y=12, FV=0, PMT=52000, PV=X however the answer I get for PV is wrong because I feel like I'm missing the initial step.

    I could be completely wrong or misinterpreted the question so any help or clarification would be amazing. Thanks.
    Answered here:

Similar Threads

  1. one step and I am there
    By sarrah in forum Discrete Mathematics, Set Theory, and Logic
    Replies: 0
    Last Post: January 17th, 2016, 12:48
  2. step in substitution
    By find_the_fun in forum Differential Equations
    Replies: 4
    Last Post: October 14th, 2014, 20:33
  3. [SOLVED] Confusion about e^ipi+1=0 ??
    By I like Serena in forum Analysis
    Replies: 9
    Last Post: January 30th, 2013, 10:00
  4. Replies: 7
    Last Post: December 20th, 2012, 15:10

Tags for this Thread

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
Math Help Boards